3 Steps to Cope Up with the Stress Due to Your Unpaid Loans [Avoid Being Maltreated by a Collector]

Here on Self-Help, I am not just promoting these sprouting quick cash loans companies here in the Philippines, but, I am giving you a fair warning about the consequences of availing these quick cash loan offers.

Yesterday night, I found a picture of a woman on Pixabay.com, this drawing depicts a woman behind prison bars.

Ang utang ay isang parang kulungan

Being in debt is actually like being in prison, especially if payables are not manageable any longer. I am telling you this because this is my experience first hand.

Peace is not present if loan collectors are calling you any moment of the day — pressuring you to promise to pay on a given schedule. Are you in a situation, as well?

If you are stressed right now, I definitely can imagine that. That’s not easy.

It is obvious that most of us Filipinos are in crisis. I don’t need to prove that — the status quo is visible.

Inflation is rising, and the prices of the basic commodities are rising, as well. Your hard earned money for 15 days, to be honest, can’t feed your stomach within 15 days — agree or disagree?

You’ll find a way to feed your family.

Lending companies are seeing this! That’s why if you go to Facebook and you’ll see quick cash loan offers! Online loan offers here in the Philippines is everywhere — go to Google and you’ll see.

So, what are we supposed to do in this trying times?

Here are 3 working steps that will unstress yourself with the overwhelming thoughts of settling your overdue loans

Step One: Communicate with the lending company, communication is key

If the due date is approaching, try to see if it is possible to settle your obligation — if not — email or call the lending company.

It is a good move to initiate the action — do not wait for an agent to follow-up your payment.

Build a relationship with that quick cash loan provider. Let them know that you are thinking about your obligation with them.

And if you are not sure that you cannot settle on time, prior to the due date, contact them and kindly ask for an extension.

Some agents are not polite for sure, but if you try to explain your side, they are still humans — and they can understand your situation.

Indeed, communication is key!

Loan collectors will inform your contacts about your unpaid loan!

(Not all collectors are like these though, based on my personal experience, Tala’s collection department is well-trained about the proper etiquette in calling customers… did you experience the same?)

There were many Pinoy that are already victims of this scheme. Loan collectors were sending text messages to their contacts and informed them that this person has an unpaid loan with them and settlement is a must.

The problem is, we have given quick cash loan companies the permission to view our contacts during the installation process of the app!

You know what, if this lending company offers you a way to apply for a loan via their website — do it. Do not opt for the mobile app.

Just like me, I have applied for my first loan on CashWagon using their website — I did not download the app… so, they do not have my contact in their system — except the contacts that I have provided on the application form.

Here is my experience with CashWagon – my loan was approved within 5 minutes, but my loan proceeds was deposited into my bank account after 5 days (they do not work on holidays and weekends). Read my experience with CashWagon so you have some idea already.

Remember, they require you to have a bank account, if not, you can’t apply. But, if opening a bank account is your problem — I got you a fix. Today, if you have 1 valid ID and 500 Pesos, you can open a bank account with RCBC savings.

So again, be wise! Don’t easily fall into their scheme. If you can apply on their website, choose that option.

Otherwise, if you are using the app, and the app tells you that connecting your Facebook account can help you get a fast approval — if that’s just an optional step — do not proceed. You got plenty of contacts in your messenger for sure. By authorizing them access, they can already see your list of friends, etc.

For example, when I have applied for a quick cash loan with LoanIt, there is an optional step that could help a fast approval of my application: connecting my Facebook account — but I completely ignore that.

After 7 hours, I was notified via email that my loan was approved and the loan proceeds were already on my bank account. Read my experience with LoanIt here – they were fast in sending money into my account.

How to contact them?

First thing, head over to their website or app, and try looking for a number or email address.

I’d recommend you have to do both: text them, call them and email them.

So there’s no fault in your part, you’ve done your best to get in touch.

And do it in advance! Do not wait for your due date to pass.

In your phone calls, text messages or emails:

  • Be nice to them, be polite even if they are not. We have the notion that customer is always right, but this time, even if the agent is not nice to you, be nice to them… it is YOU who is asking a favor.
  • Write a good text message, do not use jejemon.
  • Construct a good email, if possible, make it formal.

By doing this, they will know that you are a decent person. Decent persons know how to stick with their words and obligations, right?

Therefore, loan agents/collectors have no reason for texting your contacts!

Most of the times, they will resort to harassing you or making you embarrassed with your contacts when you try to avoid them: when you try to cancel phone calls, etc.

Step Two: Know your rights

If you know your rights, no one can easily bully or harass you.

It is sad to know that there are people who do not understand the situation and start bullying you for that matter.

However, knowing your rights as a citizen of the Republic of the Philippines is a weapon!

Even if you are indebted to somebody doesn’t mean you are less of a person.

So now, know your rights! They said Pinoys is not keen on reading, change that habit. Read so you know things that are beneficial to you!

A. How if a loan collector is telling you-you’ll be charged with estafa?

Will your world turns upside down?

Written on Article III, Bill of Rights, Section 20 of the 1987 Constitution: No person shall be imprisoned for debt or non-payment of a poll tax.

Link to the Official Gazette

I talked about “estafa” on my post: Can I be jailed for non-payment of debt (utang) in the Philippines?

You should give some few minutes to read and digest that post.

B. How if a collection officer is maltreating you?

Bangko Sentral ng Pilipinas (BSP) Circular No. 454 – Series of 2004

If you are being harassed or maltreated, the Circular No.454 will protect you.

The following practices are prohibited by the existing regulations of the BSP:

(The list are not reworded, and appear as written on the Circular.)

  • The use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person;
  • The use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws;
  • Disclosure of the names of credit cardholders who allegedly refuse to pay debts;
  • Threat to take any action that cannot legally be taken;
  • Communicating or threat to communicate to any person credit information which is known to be false, including failure to communicate that a debt is being disputed;
  • Any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a cardholder; and
  • Making contact at unreasonable/inconvenient times or hours which shall be defined as contact before 6:00 A.M. or after 10:00 P.M., unless the account is past due for more than sixty (60) days or the cardholder has given express permission or said times are the only reasonable or convenient opportunities for contact.

Source: Circular No. 454 by the BSP

If you are harassed, gather all those evidence and communicate with the BSP. Their email address is consumeraffairs@bsp.gov.ph.

C. How if loan collectors are invading your data privacy?

The answer is the Republic Act 10173 – Data Privacy Act of 2012.

On Section 31 of the Data Privacy Act, it states that a malicious disclosure of personal sensitive information that is unwarranted will face an imprisonment and a fine.

The entire act contains a lot of legal jargons, so it could be overwhelming for us Pinoys.

Nevertheless, the National Privacy Commission is encouraging all of us to know our rights.

So right now, if you feel that your personal information is maliciously disclosed by a lending company, you can file a complaint with the NPC.

Click here to go to the NPC Know Your Rights page for further details.

D. How if a lending company charges you for something that was not disclosed to you prior to the consummation of the transaction?

Truth in Lending Act (Republic Act No. 3765)

Consummation means being finalized. So, if a lender is charging you some additional money that is not stated clearly before the transaction is being finalized — that is a violation of the Truth in Lending Act.

For example, the Social Security System (SSS) clearly adheres with the R.A. 3765. When you are going to apply with them, they will print out a disclosure about your loan proceeds, including the amortization schedule and any fee that may apply.

For that matter, you may check my recent experience with my Salary loan application with the SSS done conveniently via their online portal — MySSS.

Step Three: Look for an avenue to make extra money

If you know that your salary is not enough, you have to find a way to make extra money. (I am mostly talking about employed individuals here, but this may apply to self-employed, as well.)

Actually, the latest inventions of technology paved a way for Filipinos to make extra money at home. Look for online jobs — during your free hours.

If you are a stay-at-home Mom, you can support your husband this way.

What to look for? It depends on your skills and the things you want to learn.

Things to avoid: As much as possible, do not grab a quick money scheme on Facebook, especially if it asked you to put some amount of money to get started. Guys, I’ve been here on the internet for more than a decade, I knew these tactics.

These people make money from you, you get some return, but overall, you are just wasting your time because this scheme will NOT last.

Why not hon your skills right now and build something that will profit in the long term?

Remember: Jobs that require skills and dedication (hard work) are jobs that are high paying and jobs that are lasting.

On Facebook, there are a lot of Filipinos that are enticed of some quick money ideas — my best advice is to completely avoid them.

Do the money making slowly but surely.

There is NO such thing like invest, sit, make money while you sleep.

Therefore, if you have unpaid loans right now, make sure you can generate some extra cash. If your main income is not enough for your basic needs — how could you allocate money to settle your payables?

Just like the picture above, settling a debt with another debt will just put yourself into a worse situation. 

Okay, here are a few legit sites you want to check:

  • Academia-Research.com — if you have a good command of English language, check this site. The pay is decent. But in order to be accepted, you have to pass a writing exam. If they have not changed it, you’ll be writing an essay. If you passed the test, you can start checking for orders. You have the complete freedom to accept what order to work on (but once accepted, you have the obligation to finish it on time). Your clients will be students around the world who wants their essay written or re-written. Payment will be sent on PayPal. Link to Academia.
  • Fiverr.com — this is a legit marketplace and I’ve made over a thousand dollars here. I recommend checking this out, there’s plenty of things you can sell here depending on your skills or passion (there is always a room for newcomers). You can do graphics, writing, voice over, and more. Your earnings can be withdrawn through PayPal. Link to Fiverr.
  • Humanatic.com (link) — you need a good pair of headset, a good internet connection, and a nice working gadget. You will be reviewing calls here, mostly English calls. This is legit — my wife and I had been paid here. You’ll be signing up with your verified PayPal Account. Sign up with PayPal and verify it by linking your bank, visa powered debit card or credit card. Open a bank account today with just 1 valid ID and 500 pesos initial deposit.
  • Zwerl (A fairly new company, also known as Sphere or Heysphere) — If you have a good command of English, and are fun of advising people, or answering their questions, you can sign up as an Expert on Zwerl. I am new here so I am not paid yet, but there are several people who are here already for a quite some time and they enjoy being experts. You can work on your mobile phone, but I preferred working either on my desktop pc or laptop. Link to Zwerl, NOT a referral link.
  • UpWork – a hub for freelancers, a fairly competitive platform. UpWork is formerly known as oDesk. I was a member of oDesk, but I did not survive, mainly because I was young back then and I easily surrendered. This could be your door to finding good paying clients.

CryptoCurrency trading is hot, but I am not sure if it is a good solution. Crypto trading is just like gambling. I have tried that on Coins.ph, I had invested 5,000 Pesos, but after more than a week, I have pulled out my investment, and it amounted less than 5k.

Blogging is a good idea if you want to build a passive income, but you cannot rely on make money blogging if you are just starting. Basically, you have to wait for a year or more to start monetizing your blog. Monetizing a blog doesn’t mean you are already making money… but anyone who is willing to blog — I can help.

In my next writeups, I will be writing some detailed guide on how to start a good looking blog on Blogger and WordPress. If you are interested, stay tuned as I am planning to give away some premium themes for you to start with.

To sum up, this article is a long read, however, this is a way to unstress yourself right now. Unpaid loans or overdue payables can be so stressful — especially if loan collectors are mean to you.

I’ve been there, that’s why I have said a lot!

But if you will consider the 3 steps outlined above, you’ll be okay. It’s not a quick solution though, but if you are willing to work it out — you’ll wake up the next day without many wrinkles.

In a few lines, these are the steps summarized as follows:

  • Communicate with the lending company or collecting agents prior to your due date – ask them for an extension.
  • Know your rights so you will know if the lending company or the loan collectors are already crossing the line.
  • Find a way to make extra money because settling a debt with another debt can make things worse.


Here on Self-Help, this is our passion, to keep you informed, however, we cannot guarantee you the accuracy of our content. This information is provided as-is, we are only an ordinary person like you — please check our disclaimer here.

We are also inviting you to join our Online Loans Guide Group on Facebook.

Image source: Pixabay.com (with text additions)

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Prime Aque is the back-end guy of Self-Help. He is a blogger and WordPress front-end designer. Importantly, he is a husband and a father of three wonderful kids. His firstborn are twin girls. He loves writing and sharing.

24 thoughts on “3 Steps to Cope Up with the Stress Due to Your Unpaid Loans [Avoid Being Maltreated by a Collector]”

  1. I want to learn morenof the online jobs that was listed on the blog. Please email me link to choose what is best. Thank you..

    • Hello Ma’am, you may contact me directly on Facebook so we can have a chat sometime. Or you may use the contact form on our contact page here… you can find that on the menu above. Thank you.

    • Hello Kaye, you’re welcome, I am happy to know that this article was able to enlighten you! Just stay focus… huwag masyadong magpa-stress… makakahanap din po kayo ng pambayad soon. You are not alone.

  2. Thank you for this article. I hope that my lender will cooperate with me in regards to paying my debt.

  3. Hello po.madami po akong natutunan dito sa page nio.as of now nag struggle po ako sa online loans ko.nakarating na ang notification sa mga big boss ko.sobrang nakakahiya at the same time yung reputation ko sa office nasira na.hindi ko po alam na nakukuha pala nila lahat ng contact number sa fone ko..na pwde ko ding ika-terminate ko.paano ko po kaya masosolusyonan ito..some ideas po..slmat po and waiting for your response..

    • Hello Reycel, sana mabasa mo itong response ko. Yan ang pinakamahirap po na sitwasyon. I think, ang pinakada-best niyong gawin as of now is magpaliwanag ng maayos sa boss niyo. Magpaliwanag ka rin sa mga kakilala na nakatanggap ng mensahe. In the first place, mali po ang ginagawa ng mga collector — kahit delayed ka — dapat hindi nila kinakalat ang info about sa utang niyo — maliban nalang seguro sa mga references niyo na inilagay sa app. Honesty will set you free — pwede mong aminin sa kanila na nagkakautang ka — pero never sumagi sa iyong isipan na takasan ang utang — nagigipit ka lang… halos lahat naman tayo eh nagigipit. Just be honest to yourself, and I think kung ito’y mapapaliwanag niyo ng maayos eh maiintindihan ka nila… Tandaan niyo, halos lahat ng tao may utang, hindi ka nag-iisa, maraming makakaintindi sa iyo. Sa mga contacts niyo, ipaliwanag ninyo na hindi niyo sila nilagay as references, ang app mismo ng lender ang naka-access ng mga contacts niyo. I hope it helps you po. Huwag niyo masyado e-stress ang sarili — dahil mas lalala ang sitwasyon.

  4. Maraming salamat po sa response nio.pwede po ba silang ireklamo sa npc?ang sabi yung collection agency daw po ang gumagawa nun.
    Baka po pwde rin po ako makahingi ng website na online jobs po.need ko po talaga ng extra income.slmat po ulit.

    • Hello Maam, walang anuman po. Kung sa tingin niyo po ay may nilabag talaga sila sa privacy po ninyo, eh hinihikayat po kayo ng NPC na mag sumbong sa kanila… nasa post po sa itaas ang link ng NPC Maam. Kahit collection agency, as long as pinapayagan nila na ganun ng gagawin sa mga nakautang sa kanila, I think pwede parin silang mananagot noon. Actually, madami pong mapagkikitaan online Maam… for now, ang pwede ko ma-irecommend sa inyo ay humanatic at zwerl. Familiar ka na po ba doon?
      If you have further questions po, just let me know po.
      And, I am teaching people how to blog and make money from it po, if you are interested, please check my Day 1 here https://selfhelp.ph/l/blogging101d1

  5. Hi Sir..Thanks po sa advice. Ask ko lang po if yung app po ba na uninstall na sa phone hind na nila ma contact yung mga nasa contacts ko?

    • Hello po Maam, I am happy to know that you find this post helpful po. Anyway, some few borrowers recommended to uninstall the app and hard reset the phone, but I was not able to try that on my own, so I cannot verify if its working or not… but, I think once consented sila to view your contacts, I guess automatic na po yan mag sync sa kanilang system — all the info na need nila — as long as pinayagan po during the installation of the app.

  6. Your post is very much informational and a big help. Thank you. I just have one question though and I hope you can answer it as well. Do you happen to know where we could file a complaint regarding the prolongation fee which is 40% of the loan amount to extend your due date for another 30 days. Online lending does not allow you to pay installment of your loan amount but i stead wanted you to pay the extension. Just it my case where I paid the extension fee of 8k for the past 8 months and it already is more than triple my loan. I have paid more than enough of the loan amount already.

    • Hello Che, thank you that you find this post helpful. I want to be honest with you with that question — I think you can try to address that issue with the SEC. SEC is responsible for giving lenders the authority to operate. However, with the absence of the Usury Law here in the Philippines — that gives freedom to lending companies to set rates and other policies. So, if you have agreed with the loan terms in the first place — that makes everything valid. If you are going to think about it, they won’t really allow you for an installment — because the extension terms make them a lot of money. In my honest opinion, I think you can now stop paying your loan, I think it is not against your conscience already. As you have said, you have paid more than triple of your principal loan value. I am sure they will insist you to continue paying, but better bring the case on a small court claims — so you can arrange an amicable settlement — that way it is more favorable to you. I hope this helps đŸ™‚

  7. what will happen if u just ignore paying this online loans? they say this is invalid because u didn’t sign any contract or what not. how true is this?

  8. Hi po, my situation is same with other followers as well. I have not paid my loan for almost 20 days napo since jobless ako sa ngyn and 2 days pa lang po akong lumampas sa due date ay nagsend po cla ng mga text messages sa lahat ng contacts ko sa phone even they were not listed as my references. Which resulted to humiliation and nakipag settle ako sa knila pero di cla pmayag na di ko bayaran agad and in full. Until when po ba ang allowed before they can file a case for my delinquent loans?

  9. I also have the same situation here. Kakapanganak ko lang with a special case cs pa. I was not able to pay the loan since anlaki ang nabayaran namin sa hospital. Nawala sa isip ko paglabas ni baby and until now still paying sa nautang namin sa hospital. May natanggap akong Txt na pupuntahan ako sa bahay. Totoo ba yun?

  10. Hi same here. Nging almost 9k plus na sya and ayaw nila sa partial. Now sabi magfifile n ng estafa sa akin sa small claims court. Pwede po ba un?

  11. Gud day,,,pwd lng po unti-untiin ko ang pagbabayad sa kanila??kc gipit lng po talaga,,,until ma fullypaid ko po yung hiniram ko??maa access paba kaya yung mga kontaks ko sa phone na delete ko after nag due date ako?at yung fb ko na deactivated na??salamat po

    • Yes, pwede naman po yun. Masyado na po ba malaki ang tubo? If that’s the case, makakatulong po ang small court case, para mas favorable po sa inyo ang settlement… otherwise, kung bibigyan kayo ng favor ni lender to just settle a small amount of interest, as long as the principal amount is fully paid, okay na rin.


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